Investment Law

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 dated December 25, 2001 of the Xth National Assembly, the 10th session;

This Law provides for investment activities.

Chapter I

GENERAL PROVISIONS

Article 1.

Regulation scope

This Law provides for investment activities for business purposes; rights and obligations of investors; assurance of legitimate rights and interests of investors; investment encouragement and preferences; state management of investment in Vietnam and offshore investment from Vietnam.

Article 2.

Application subjects

1. Domestic and foreign investors carrying out investment activities in the Vietnamese territory and making offshore investment from Vietnam.

2. Organizations and individuals involved in investment activities.

Article 3.

Interpretation of terms

In this Law, the terms below shall be construed as follows:

1. Investment means the use of capital in the form of tangible or intangible assets by investors to create assets for carrying out investment activities in accordance with the provisions of this Law and other relevant provisions of law.

2. Direct investment meansa form of investment whereby investors use capital for investment and take part in the management of investment activities.

3. Indirect investment means a form of investment through the purchase of shares, share certificates, bonds, other valuable papers or a securities investment fund and through other intermediary financial institutions whereby investors do not directly participate in the management of investment activities.

4. Investors means any organizations or individuals carrying out investment activities in accordance with the provisions of Vietnamese law, including:

a) Enterprises of all economic sectors, which are established under the Enterprise Law;

b) Cooperatives, unions of cooperatives, which are established under the Cooperatives Law;

c) Foreign-invested enterprises, which are established before the effective date of this Law;